University adopts new policy statement for endowment

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The Board of Regents has approved a new investment policy statement for the university’s Long Term Portfolio, the primary investment vehicle for the university’s endowment funds.

The policy statement, which the board approved Sept. 19, consolidates and formalizes various guidelines, restrictions and delegations previously established by the regents, creating a comprehensive guide for managing the university’s investments.

The consolidated policy statement incorporates additional risk management and diversification guidelines, including recommendations by the university’s investment consultant, Cambridge Associates, reflecting a balanced approach to maintaining and growing the university’s endowment.

It outlines the university’s framework for asset allocation, performance benchmarks, investment selection and risk management, in keeping with best practices among peer institutions.

The approval of the policy statement by the regents follows a thorough review and recommendation from the board’s Finance, Audit, and Investment Committee and the Investment Advisory Committee.

The policy statement will be publicly available and incorporates existing policies and procedures — Regents’ Bylaws, regental action items, Standard Practice Guides and investment policies — that were previously documented separately.

This consolidation enhances transparency of the Long Term Portfolio’s governance, streamlines the university’s investment management processes, and reflects the university’s commitment to prudent risk management, ensuring that the endowment continues to support the university’s mission, programs and initiatives for the long term.

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Comments

  1. Bob Harold
    on September 20, 2024 at 9:26 am

    I am surprised that the article did not include a link to the new policy. I think it is:
    https://regents.umich.edu/files/meetings/09-24/2024-09-IX-1.pdf

  2. Jane Langeland
    on September 20, 2024 at 2:56 pm

    Thank you, Bob!

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